Fed’s Hammack says policy Is not restrictive enough

Cleveland Fed President Beth Hammack wrote that the current monetary policy stance in the Fed is not restrictive, emphasizing that inflation is too high, at an article on LinkedIn. She added that local contact views indicate that “now is the time for the Fed to hike to control inflation.”

On Thursday, August 27, Hammack said in an interview with Fox Business that the job market is broadly in balance, though he added that “we need restrictiveness in policy.”  She added that she expects slow progress on inflation, and her forecast is that inflation will be around 2.5% at best in 2027<

Key highlights:

FED POLICY NOT RESTRICTIVE AND INFLATION IS TOO HIGH – LINKEDIN

CONTACT VIEWS INDICATE NOW IS TIME FOR FED TO HIKE TO CONTROL INFLATION